These aren't ideal times for investors prone to vertigo. The wild gyrations on the market is set to persist for a while yet with the market giving up most of yesterday's stellar gains.
Losses on the S&P/ASX 200 (ASX: XJO) are accelerating with the index tumbling 2.7% at the time of writing.
The big swings create opportunity! Those with a strong stomach who are looking for ideas during this coronavirus sell-off might want to put these two ASX stocks on their watchlist after leading brokers upgraded them to "buy".
Worth a bet in a recession
Wagering and lottery group Tabcorp Holdings Limited (ASX: TAH) is one that got promoted after Credit Suisse lifted its recommendation on the stock to "outperform" from "neutral".
The broker turned bullish on the stock after Tabcorp's recent share price drop and because wagering and lotteries proved to be defensive businesses during the GFC more than a decade ago.
"Tabcorp is expected to launch its new wagering system in the June quarter 2020, subject to regulatory approval," said Credit Suisse.
"This initiative is critical to fully integrating Ubet wagering customers to the TAB system and is expected to stabilise wagering revenue in FY21."
Despite the favourable view on the group's businesses, Credit Suisse lowered its earnings forecasts for Tabcorp to factor in a buffer due to the uncertainty of how the COVID-19 outbreak will play out. The broker's price target on Tabcorp is $4.50 a share.
The TAH share price jumped 0.6% to $3.41 ahead of the market close.
High yield and big capital growth
Another stock that's outperforming in this dismal market is the Fortescue Metals Group Limited (ASX: FMG) share price.
The iron ore miner got a boost after JP Morgan upgraded the stock to "overweight" from "neutral" after the stock tumbled deep into value territory.
"The COVID-19 crisis is likely to play out over the months to come," said the broker.
"However, FMG shares have reached a point that we can no longer ignore from a valuation point of view.
"This is despite iron ore prices being up in AUD terms this calendar year and lower grade Fe discounts narrowing. We believe investors willing to look through the crisis will be well rewarded."
JP Morgan estimates that the stock is yielding around 8% for FY21 and FY22 and pointed out its trading well below the broker's price target of $11 a share.
Just mind the bumps as shares are in for a rough ride in the near-term.
